A transaction can be written that requires two signatures to spend it next. You write a payment that requires the signature of both the recipient and the sender to spend it. To release the escrow, you give the recipient the signature for your half, or the payee can return it by giving you his signed half. There's no mediator in this simple case. The recourse is to refuse to ever release it, essentially burning the money.
That is really quite clever!
Do you simply assign the transaction to two bitcoin addresses and transmit it to the network for inclusion in the block list?
Can you do more than two? Is it a one-or-more situation?
Is this feature in the GUI yet?